Oil falls as world growth outlook dims
October 9, 2012, 12:00 am TWN
BANGKOK--Multiple signs that the global economy is struggling to escape its mire kept oil prices on their down trend Monday.
Benchmark crude for November delivery tumbled US$1.51, or 1.7 percent, to US$88.37 per barrel by late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange.
In London, Brent crude, which is used to price international varieties of oil, fell US$1.19 to US$110.83 a barrel.
Oil fell more than 2 percent Friday as traders fret that jobs aren't growing fast enough in the U.S. to significantly boost demand for fuel. The contract closed down US$1.83 to US$89.88 per barrel.
The economy created 114,000 jobs in September, in line with what economists had expected but not an indication of strong jobs growth. The U.S. Labor Department said the unemployment rate fell to 7.8 percent, the first time it's been below 8 percent in nearly four years.
In a new sign of a weak global economy, the World Bank cut the growth outlook for developing Asia-Pacific economies for 2012 to 7.2 percent from its May forecast of 7.6 percent. The bank cited weak global demand due to the lackluster U.S. recovery and Europe's recession.
The bank also cut its forecast for China, the region's biggest economy, to 7.7 percent from May's 8.2 percent.